GENERAL INSTRUCTIONS
WHAT IS A VEHICLE BILL OF
SALE?
A Vehicle Bill of Sale is a formal written
document used to describe and document
the transfer of ownership of a motor vehicle
from a seller to a buyer. This legal
document is appropriate for individual items
rather than commercially produced items
sold in large quantities. The document itself
u s u a l l y o u t l i n e s t h e r i g h t s a n d
responsibilities of each party in relation to
the sale and is created before any money or
possession changes hands.
Generally, this document includes the
names and details of both the seller and the
buyer, information about the goods to be
sold, and the date and price of the sales
transaction. Both parties typically sign the
document and both parties should retain a
copy for their records. You should check
your local regulations and state law as
some require the Vehicle Bill of Sale to
contain certain provisions and/or formalities
such as a notary acknowledgement for the
signatures.
A Bill of Sale can include seller's warranties
or no warranties. If the Bill of Sale includes
warranties, then those typically relate to the
condition of the product, the existence of
any liens or encumbrances and whether
any repairs or replacements will be made
within a certain period of time. One that
does not include warranties is typically
referred to as an "as-is" sale. This means
that the product is sold and received as it is
p r e s e n t e d w i t h o u t a n y a d d i t i o n a l
guarantees or warranties relating to the
condition of the product. The buyer accepts
any faults or imperfections that exist with
the item at the time of the purchase.
In most cases, a Bill of Sale will not allow a
buyer to return an item even if damaged.
H o w e v e r, a se l l e r m a y no t li e or
misrepresent the condition of an item before
it is sold or attempt to hide any flaws from a
buyer or else this could invalidate the terms
of the sale.
WHAT CAN IT BE USED FOR?
A Bill of Sale can be used for a variety of
different items but is often used when
ownership of the following is being
transferred: Cars, motorcycles, boats,
recreational vehicles, aircrafts or other
vehicles.
WHO CAN USE A BILL OF SALE?
Anyone who intends to sell or buy an item
of value should consider using a Bill of
Sale. Whether you are the seller or the
buyer, this document should be of interest
to you as the document aims to protect the
rights of both parties.
If you are selling or purchasing an item
with a high value, a used (second-hand)
item, an item via trading websites, private
sales, or a vehicle owned by a private
individual, then a Bill of Sale is particularly
effective and appropriate. If you are unsure
whether to use a Bill of Sale, it may be a
good idea for you to consult with a legal
professional before completing the deal so
that you can determine whether this
document is the right choice for your
needs.
An alternative to a Bill of Sale is a Sales
Agreement. A Sales Agreement is suitable
in circumstances where warranties or
further guarantees are necessary or if the
p a r t i e s i n t e n d to s e t u p a m o r e
complicated payment arrangement such
as installment payments over a long period
of time.
WHAT ARE THE BENEFITS?
For both the seller and the buyer, the Bill of
Sale is a useful document for accounting
and tax purposes and can be submitted as
evidence in related matters. The document
records the fact of the transfer of
ownership as well as captures the date
and the price of the sale. In particular, if
the ownership is ever challenged in the
future, this information is vital and
essential to establishing ownership and
showing that the transfer was properly
completed.